Markets are pretty much jogging back and forth along well-worn paths. EUR/USD acts rather like a fishing bobber, sneaking underwater briefly, but bobbing back to the surface qucikly, once the pressure eases on the pair. EUR/USD sneaks to the 1.2815/25 area and then quickly pops to 1.2850/60 as dealers remain reluctant to short EUR/USD in an area from where we’ve bounced hard three straight times. The bounces are less severe each time, however. Last week we stalled at 1.3325. Overnight, the rally petered out at 1.3069. Today’s bounce only reached 1.2933.
USD/JPY continues to falter ahead of the 90.00 level once again, with reports of offers scattered up to 90.50 reemerging again today. A bit of late session squaring is weighing on the buck at the moment as prices dip to the 89.40s.
Cable was the star for a time this morning, overcoming resistance at 1.4500 and 1.4550, reaching 1.4577 before coming off quite quickly to the 1.4420 level before steadying this afternoon.
